Tech stocks including Apple, Dell and ASML rise after US tax exemptions

Bengaluru — Global technology stocks rose on Monday after the US exempted electronics such as smartphones and computer hardware from its steep reciprocal tariffs on China, offering some relief to a sector battered by supply-chain uncertainty.

Big Tech shares have slumped in the past two weeks as tit-for-tat tariffs between Washington and Beijing stoked fears of higher component costs, softer consumer demand and the worst supply-chain disruption since the Covid-19 pandemic.

The exemptions suggest an increasing awareness within the Trump administration of the pain that the tariffs had in store for inflation-weary consumers, especially on popular products such as smartphones, laptops and other electronic goods.

“The removal of the worst-case scenario is an element of support (at least temporarily) for the sector,” analyst Alberto Gegra of Equita said, adding that it helps to avoid a total block of supplies due to tariffs on China exceeding 100%.

Apple shares were up 5.5% in US premarket trading. They had declined 9.1% in the past two weeks as its flagship product, the iPhone — primarily made in China and imported into the US — was at risk of significant price hikes if substantial tariffs persisted, analysts warned.

Other consumer-facing companies including computer hardware makers HP and Dell Technologies surged 6% and 6.8%, respectively, while chip giant Nvidia was up 1.8% in a broad-based recovery in semiconductor stocks.

European chip stocks also advanced, with gains strongest for those most exposed to the US market such as ASM International and Infineon rising between 3% and 3.8% in morning trading.

Major Asian suppliers to companies such as Apple advanced. Foxconn, the largest iPhone assembler, rose as much as 7.8% before trimming gains to close 3% higher. Contract laptop maker Quanta closed up 5.8% and Inventec, which makes artificial intelligence servers, rose 4.1%.

The White House unveiled the tariff exemptions on Friday, covering 20 categories, including computers and laptops, as well as semiconductor devices memory chips and flat panel displays.

But the relief may be short-lived, as US President Donald Trump on Sunday pledged fresh tariffs on imported semiconductors within days, part of his push to shift manufacturing away from China, a major tech market and global production hub.

US commerce secretary Howard Lutnick also said on Sunday that the exempted electronics would face separate new duties along with semiconductors within the next two months.

“The net effect is positive for tech, especially for giants like Apple, which could’ve seen their entire pricing strategy thrown into disarray under the proposed 145% China tariffs,” said Matt Britzman, senior equity analyst, Hargreaves Lansdown.

“Instead, this reprieve, and news that further tariffs will be a couple of months away, gives Apple time to build up its US inventory to cover the current iPhone sales cycle without needing knee-jerk price hikes.”

Reuters